Perak FMM Calls For More Engagement Sessions To Clarify SST Expansion

IPOH, July 28 (Bernama) -- The Perak Federation of Malaysian Manufacturers (FMM) is calling for more engagement sessions to be held to provide clarification to industry players regarding the expansion of the Sales and Services Tax (SST) scope, which came into effect on July 1.

Its deputy chairman Mark Chan Chow Loong said this was important given that the expansion involves more than 3,000 additional items, raising many technical questions among manufacturers.

“As we know, the SST expansion was only recently announced, so many companies and manufacturers still require further clarification on how it is implemented and its impact on production costs.

“Therefore, these sessions are very beneficial as they provide a clearer understanding to manufacturers, especially regarding the list of products involved, exemption applications, and implications on production costs,” he said at the Special Coffee Series: SST Expansion briefing here today.

Also present was Perak State Development Corporation (PKNPk) chief executive officer Datuk Redza Rafiq Abdul Razak.

A total of 450 industry players and manufacturers from various sectors across Perak attended the session.

Chan explained that while the SST expansion has implications on the cost of raw materials, the impact varies depending on the type of product and the composition of raw materials used.

“For instance, in the plastics industry, raw materials contribute between 60 to 80 per cent of the cost of finished products. So any additional tax imposed will have a direct impact on prices,” he said.

Meanwhile, Redza Rafiq said the engagement session was not just a typical briefing, but rather a strategic and inclusive platform that brought together policymakers, implementing agencies, and the business community.

He said this effort is in line with PKNPk’s mission to become a facilitator and problem solver for the business community, particularly in an increasingly complex and challenging economic environment.

“We do not want any information gap between the policies announced and their actual implementation on the ground. This is not just about taxes, it’s about clarity, confidence, and business continuity.

“In a constantly evolving world, two-way communication must also be faster, more open, and responsive. That’s why we organise programmes like this, to ensure policies are not only heard but also fully understood at the core of business operations,” he said.

-- BERNAMA